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78-484 f' .~ 8/1/78 CITY OF ANAHEIM ~UTION NO.....7.6.R::!t.8A.n /'............ RESOLUTION OF :.te:CITY CO~CIL OF THE CITY OF ANAHEIM, CALIFOItNIA, AUTHORIZING THE . UANCE Of $42,000,000 ELECTRIC REVENUE BONDS OF SAID CITY AND PRO ING THE TERMS AND CONDmONS FOR THE ISSUANCE i OF SAID BONDS WHEREAS, the City of !Anaheim is a municipal corporation organized and existing under a Charter duly and regularly adopted p~uant to the provisions of the Constitution of the State of California; and WHEREAS, Section 12tO of said Charter provides as follows: "Bonds which are Hawable only out of such revenues as may be specified in such bonds may be issued when the City C4uncil by ordinance shall have established a procedure for the issuance of such bonds. Such bond;, payable only out of revenues, shall not constitute an indebtedness or general obligation of th~ City. No such bonds payable out of revenues shall be issued without the assent of a majority of the voters votittg upon the proposition for issuing the same at an election at which such propositi~ shall have baen duly submitted to the qualified electors of the City. "It shall be comPetent for the City to make contracts and covenants f r the benefit of the holders of any such bo,ds payable only from revenues and which shall not constitute a general obligation of the City f4>r the establishment of a fund or funds, for the mai taining of adequate rates or charges, for rest#ctions upon further indebtedness payable out of the s e fund or revenues, for restrictions upon tr~sfer out of sueh fund, and other appropriate coven s. Money placed in any such special fund f~r the payment of principal and/or interest on any is ue of such bonds or to assure the applicatioq' thereof to a specific purpose shall not be expended f r any other purpose whatever except for the !purpose for which such special fund was established d shall be deemed segregated from all othet funds of the City and reserved exclusively for the purPose for which such special fund was establ~hed until the purpose of its establishment shall ha~e been fully accom- plished;" and . i WHEREAS, Ordinance [No. 2980 of the City Council of the City of Anaheim, I incorporating certain sections of the Revenue Bonp Act of 1941 (Chapter 6, Part 1, Division 2, Title ~ of the Government Code of the State of Californta), establishes a procedure for the issuance of such ~nds as provided for in said Section 1210; and i WHEREAS, pursuant t~ said Section 1210 and said Ordinance No. 2980, th~ City has heretofore issued $8,000,000 electric rtvenue bonds designated "Electric Revenue Bonds, Jssue of 1972"; and ~, WHEREAS, pursuant t,.-. said Section 1210, said Ordinance No. 2980 and Rei-olUtiOn No. 74R-615 of the City Council of the (:;ity of Anaheim, a special municipal election was eld in said City on March 4, 1975, for the pUI'p<:$e of submittinl to the qualified voters of said City the ollowing proposition: "In order to provi<te more economical electrical service, shall the City ofl Anaheim be author- ized to finance the co~truction and acquisition of facilities, property and irights related to the generation, transmissionl and distribution of electrical energy by issuing reven~e bonds, not payable from property taxes, in an amount not to exceed 150 Million Dollars?"; and i WHEREAS, said propqsition was approved by the votes of more than a maj~rity of all the voters voting on said proposition at said special municipal election; and 1 t, 8/1/78 r' ~ ..~ WHEREAS, of said aut~orized amount of $150,000,000, said City has heretofore issued $6,000,000 electric revenue bonds desigttated "Electric Revenue Bonds, Issue of 1976", and $12,500,000 electric revenue bonds designated "Electric Revenue Bonds, Second Issue (Subordinated) of 1976"; and WHEREAS, this City C~uncil deems it necessary to issue and sell $42,000,000 principal amount of electric revenue bonds at this: time, to be designated "Electric Revenue Bonds, Issue of 1978"; NOW, THEREFORE, the City Council of the City of Anaheim, California, DOES HEREBY RESOL VB, DETERMINE AND ORDER as follows: Section 1. Definitions.. As used in this Resolution: (a) "Authorized i,vestments" means any obligations in which the City may lawfully invest its funds, provided that! so long as any of the 1972 Bonds are outstanding the term "authorized investments" shall be .mited to mean direct obligations of or obligations guaranteed by the United States of Ameriqa, or Certificates of Deposit of recognized banks or trust companies fully secured by direct obligattons of or obligations guaranteed by the United States of America. (b) "Bonds" (cap'alized) means the revenue bonds authorized to be issued by this Resolution. (c) "City" means i the City of Anaheim, California. (d) "City Council~' means the City Council of the City. (e) "Enterprise" tfieans the entire electric system of the City of Anaheim, including all improvements and exte~sions later constructed or acquired (sometimes hereinafter referred to as "Electric System"). (f) "Fiscal year" ~eans the year period beginning on July 1 and ending on the next following June 30. (g) "Gross reven~&" or "Revenues" means rates, fees and charges for providing electric service to persons and r~1i property and all other fees, rents and charges and other income derived by the City, from the o....nership, operation, use or services of the enterprise, which Revenues are required to be deposited in the Electric Revenue Fund pursuant to Section 12 hereof. (h) "Maintenance. and operation expenses" means the reasonable and necessary current expenses of maintainin" repairing attd operating the enterprise, including City administrative expenses directly attrib~able to electric system functions, but excluding depreciation, interest and amortization, all comp"ed in accordance with sound accounting principles and consistent with existing accounting pra4tices of the City. (i) "Net revenues" of the enterprise means the amount of the gross revenues less the main- tenance and operation ~!penses as defined. (j) "1972 Bond :tf.esolution" means Resolution No. 72R-83 of the City Council, adopted March 14, 1972, authOljizing the issuance of the 1972 Bonds. (k) "1972 Bonds" means the $8,000,000 electric revenue bonds designated "Electric Rev- enue Bonds, Issue of 1 ~12" referred to in the recitals hereof. (1) "Parity bondsr' means revel!lue bonds, revenue notes or other similar evidences of indebtedness (including! those referred to in the 1972 Bond Resolution as "Additional Bonds") heretofore or hereafter i issued for the acquisition, construction and financing of extensions of, additions to, repairs andj replacements to, renewals of, and improvements of the enterprise, payable out of the Revenues an4 which, as provided in this Resolution, rank on a parity with the Bonds. (m) "Parity bond resolution" means any resolution authorizing the issuance of parity bonds. (n) "Revenue Bmid Law" means the Revenue Bond Law of 1941 as cited in the recitals hereof. (0) "Treasurer" ~eans the City Treasurer of the City. ~\ Section 2. Equality of IBODds, Pledge of Revenues. Pursuant to said Section 1210 of the City Charter, said Ordinance No. 2980 and this Resolution, the Bonds shall be equally secured by a pledge, 2 I"" 8/1/78 ,~ charge and lien upon the gros~ revenues of the enterprise without priority for number, date of bonds, date of sale, date of execution, or !date of delivery, and the payment of the interest on and principal of said Bonds and any premiums u~n the redemption of any thereof shall be and are secured by an exclusive pledge, charge and lien upon! the gross revenues of the enterprise, and all of the gross revenues of the enterprise are hereby pledge~, charged and assigned for the security of said Bonds, and such gross revenues and any interest eartIed on the gross revenues shall constitute a trust fund for the security and payment of the interest on an" principal of said Bonds and so long as any of the Bonds or interest thereon are unpaid said gross revenu~ and interest thereon shall not be used for any other purpose, except as permitted by this Resolution and any parity bond resolution, and shall be held in trust for the benefit of the bondholders and shall! be applied pursuant to this Resolution, or to this Resolution ~ modified pursuant to provisions herein. and any parity bond resolution. ' Nothing in this Resoluti~ shall preclude: (a) the redemption prior to maturity of any Bonds subject to call and redemption or patment of said :Bonds at maturity from proceeds of refunding bonds iss~d under said Section 1210 as tqe same now exists or as hereafter amended, or under any other law of the State of California; (b) the issuance, subject to the limitations contained herein, of parity bonds; or (c) the issuance of additiona~ indebtedness payable solely from surplus moneys in the Electric Revenue Fund pursuant to Section 1~ hereof. Section 3. Amount, Iss...nce, Purpose and Nature of Bonds. Under and pursuant to said Section 1210, Bonds in the amount o~ $42,000,000 shall be issued for the purposes stated in the recitals hereof. Said Bonds shall be special of,ligations of the City and shall be secured by a pledge of and lien upon, and shall be a charge upon, a,d shall be payable as to the principal thereof and interest thereon and any premiums upon the redemptiop. of any therem solely from, the gross revenues of the enterprise, such gross revenues being hereby pledg~ charged and assigned for the security of the Bonds. Section 4. No General (Jity Liability. The general fund of the City is not liable for the payment of the Bonds or their interest~ nor is the credit or taxing power of the City pledged for the payment of the Bonds or their interest. the holders of the Bonds or coupons shall not compel the exercise of the taxing power by the City or ~ forfeiture of any of its property. The principal of and interest on the Bonds and premiums upon t~e redemption of any thereof are not a debt of the City nor a legal or equitable pledge, charge, lien. or encumbrance, upon any of its property, or upon any of its income, receipts, or revenues, except the gross revenues of the enterprise. Section 5. Description ~f Bonds. The Bonds shall be in the principal sum of $42,000,000. The Bonds shall all be in the den+mination of $5,000, and shall be 8400 in number, numbered 1 to 8400, inclusive. The Bonds shall'" designated ELECTRIC REVENUE BONDS, ISSUE OF 1978, shall be dated August 1, 1978, and s.all be payable in consecutive numerical order on August I in each year of maturity in the amounts fdr each of the several years as follows: ,;~. Year .~. 1983.. ..... .......... .......... ..... 1984. .................... ..... ...... 1985.. .... ............. ....... ..._.. 1986......... ..... ....... ........,.. 1987............. ...... .... ......... 1988... ,,,.., .... ..... ..... .... ..,.. 1989........ ........................ 1990........ ..... .............. ..... 1991..... ........._ ................. 1992... ........... n..., ........ .... 1993._________...___..___........... 1994.. ..... ...... _ ......... .... ..... 1995.. ......... _...... .............. 1996. ...... _ ............. ..... ...... 1997...... ......._...... n........._ Principal Amount $ 475,000 525,00() 550,000 575,000 625,000 675,()()() 700,00Q 750,000 800,00Q 850,000 925,000 975,000 1,025,000 1,100,000 1,175,000 Year 1998. ___.... _.. .... .____ ..___..___.. 1999 .................... ..0......... 2000................ .............. _. 200 1................... ............. 2002. ........ _.... _. ......... ....... 2003.............................. .. 2004.. ........ ..... ..... .......... _. 2005. .......... .... .......... ....... 2006....... _.. ......... ...... ....... 2007..... ..... ..... .... .........._.. 2008.....m. _..... ........ ..... n.. 2009......... __.. ............. ...... 2010.. ..... n ........ .... ..... ...... 201 L.. ............................. 2012.. ..... .......... .... ........... Principal Amount $1,250,000 1,325,000 1,425,000 1,525,000 1,625,000 1,725,000 1,850,000 1,950,000 2,075,000 2,200,000 2,350,000 2,500,000 2,650,000 2,825,000 3,000,000 3 8/1178 ~ , """" .~ Section 6. Interest. Scjd Bonds shall bear interest at a rate or rates to be hereafter fixed by resolution, but not to exceed ieight percent (8%) per annum, ,payable semiannually on the first days of February and August of eac' year. Each Bond shall bear interest until the principal sum thereof has been paid, provided, howeve~, that if at the maturity date of any Bond, or if the same is redeemable and has been duly called fof redemption, funds are available for the payment or redemption thereof in full accordance with the t~nns of this Resolution, said Bonds shall then cease to bear interest. Said Bonds and the interest thereqn shall be payable in lawful money of the United States of America at the office of the Treasurer in AI$heim, California, or, at the option of the holder, at any paying agent of the City in Los Angeles or San Francisco, California, Chicago, Illinois, or New York, New York. Section 7. Execution oJ "onds. The Mayor of the City and the Treasurer are hereby authorized and directed to sign the Bon~$ by their printed, lithographed or engraved facsimile signatures, and the City Clerk of the City is he*by authorized and directed to countersign the Bonds and to affix thereto the corporate seal of the City, and the Treasurer is hereby authorized and directed to sign the interest coupons of the Bonds by his [printed, lithographed or engraved facsimile signature. Section 8. Registrationt The Bonds may be registered either as to principal only or as to both principal and interest, and arty registered Bond may be discharged from registration in the manner and with the effect set forth in tht provisions for registration contained in the fonn of bond set forth herein. Section 9. Redemptionlof Bonds. The Bonds maturing on or prior to August 1, 1988, are not subject to call or redemption!prior to maturity. The Bonds maturing on or after August 1, 1989, may be called before maturity an~ redeemed, at the option of the City, on August 1, 1986, or on any interest payment date thereafter pri~ to maturity, at a redemption price for each redeemable Bond equal to 1 OO~ % of the principal aniount thereof plus ~ % of such principal amount for each whole twelve months' period and for any rFmaining fraction of a twelve months' period from the redemption date to the maturity date of such Bo.d, but the redemption price, including premium payable at any time upon redemption, shall not exceed :1031;2 % of such principal amount. All or any of the Bonds Fubject to call may be called for redemption at anyone time. If less than all of the Bonds are redeemed ~t anyone time, such Bonds shall be redeemed by complete maturity or maturities. The interest pa~nt date on which Bonds which are called are to be presented for redemption is herein sometimes called "redemption date." (a) Notice of RetJemption. Notice of the intended redemption shall be published by one insertion in a newspaper of general circulation in the County of Los Angeles, California, and in a financial newspaper or Ptrnal of national circulation published in or near the City of New York, New York, said publicattons to be at least 30 days but not more than 60 days prior to the redemption date. The notice of red4tnption shall (a) state the redemption date; (b) state the redemption price; (c) state the numbers *d date of maturity of the Bonds to be redeemed, provided, that whenever any call includes all of the outstanding Bonds subject to call the numbers of the Bonds need not be stated; (d) require that such Bonds be surrendered with all interest coupons maturing subsequent to the redemption date ~eoccept that no coupons need be surrendered on Bonds registered as to both principal and interest) ~ the office of the Treasurer in Anaheim, California, or, at the option of the holder, at any paying ag.nt of the City in Los Angeles or San Francisco, California, Chicago, Illinois, or New York, New Yo.k; and (e) give notice that further interest on such Bonds will not accrue after the designated rede~tion date. ,~ The Treasurer shall, 04 or before the date of publication of said notice of redemption, mail a similar notice postage prep4id to any person, firm or corporation that originally purchased any of said Bonds from the City. 4 [ I .r'\ ,~ 8/1/78 ~ If any of the Bonds de,ignated for redemption shall be registered so as to be payable otherwise than to bearer, the Treasure. shall, on or before the date of publication of said notice of redemption, mail a similar notice postage prepaid to the respective registered owners thereof at the addresses appearing on the bond regisJry book. The actual receipt by th+ holder of any Bond of notice of such redemption shall not be a condition precedent to redemption, and [fuilure to receive such notice shall not affect the validity of the proceedings for redemption of such Borfd; or the cessation of interest on the redemption date. The notice or notices required by this sequon shall be given by the Treasurer. A certificate by the Treasurer that notice of call and rede~'tion has been given to original purchasers and to holders of registered Bonds as herein provided sI1all be conclusive as against all parties, and no bondholder whose Bond or registered Bond is called fPr redemption may object thereto or object to the cessation of interest on the redemption date fixed by any claim or showing that he failed to receive actual notice of call and redemption. (b) Redemption FJ,tnd. Prior to the redemption date there shall be established a redemption fund to be described of known as Electric Revenue Bonds, Issue of 1978, Redemption Fund (herein sometimes refentd to as "Redemption Fund"), and prior to the redemption date there shall be set aside in said Redctmption Fund moneys available for the purpose and sufficient to redeem, at the premiums payable ~ in this Resolution provided, the Bonds designated in such notice of redemption. Said mone~ must be set aside in said fund solely for that purpose and shall be applied on or after the redempti~n date to payment (principal and premium) of the Bonds to be redeemed upon presentation and $urrender of such bonds and, except as to registered Bonds, all interest coupons maturing after tile redemption date, and shall be used only for that purpose. Any interest coupon due on or prior to the redemption date shall be paid from the Bond Service Account upon presentation and surren.er thereof. Any interest due on or prior to the redemption date upon Bonds registered as to ~ principal and interest shall be paid from said Bond Service Account. Each Bond presented, if tmregistered, or if registered as to principal only, must have attached thereto or presented therewith aJl interest coupons maturing after the redemption date. If, after all of the Bonds have been redee~d and cancelled or paid and cancelled, there are moneys remaining in said Redemption Fund, said $toneys shall be transferred to the Electric Revenue Fund; provided, that if said moneys are part of the proceeds of refunding bonds said moneys shall be transferred to the fund or account created for the payment of principal of and interest on such refunding Bonds. (c) Effect of the Nptice of Redemption. When notice of redemption has been given, and when the amount necessary forithe redemption of the Bonds called for redemption (principal and premium) is set aside for that pUrfGse in the Redemption Fund, the Bonds designated for redemption shall become due and payable:on the redemption date, and upon presentation and surrender of said Bonds and, except as to Bonds. registered as to both principal and interest, all interest coupons maturing after the redemption da~, at the place specified in the notice of redemption, such Bonds shall be redeemed and paid at sai41 redemption price out of the Redemption Fund, and no interest will accrue on such Bonds called for redemption or on any interest coupon thereof after the redemption date specified in such notice, and the holders of said Bonds so called for redemption after such redemption date shall look tor the piElyment of such Bonds and the premium thereon only to said Redemption Fund. All Bonds redeemed and all interest coupons thereof shall be cancelled forthwith and shall not be reissued. ,/"""'."\ All interest couponjl pertaining to any redeemed Bonds, which coupons have matured on or prior to the redemption ~te, shall continue to be payable to the respective holders thereof but without interest thereon. All u$,aid interest payable at or prior to the redemption date upon Bonds registered in such mannet that the interest is payable only to the registered owners shall continue to be payable to the respe~e registered owners of such Bonds, or their order, but without interest thereon. 5 8/1/78 I"'" ~ ~. Section 10. Funds an4 Accounts. A. The Treasurer shall continue to maintain the following funds and accounts, heretofore created under and pursuant to said Section 1210: ( 1) Electric Reve~ue Fund, and the following accounts within said fund: (a) Electric Revenue Bonds, Election 1975, Construction Account (the "Construction Account") ; (b) Electric Revenue Bonds, Bond Service Account (the "Bond Service Account"); (c) Electric ~ystem Maintenance and Operation Account (the "M&O Account"); (d) Electric $ystem Renewal and Replacement Account (the "R&R Account"); and (e) Electric :Q.evenue Bonds, Issue of 1972, Electric System Revenue Bond Construction Account; and (2) Electric Syster+. Surplus Revettue Fund. The Treasurer shall co~ttnue to maintain the separate account described in (e) above only so long as any of the 1972 Bo~ remain outstanding. B. The Fiscal Agent up.. der the 1972. Bond Resolution shall continue to maintain the following funds so long as any of the ~972 Bonds remain outstanding: (1) Electric Revenpe Bonds, Issue of 1972, Electric System Revenue Bond and Interest Fund (the "Bond Service FuntJ"); and (2) Electric Reveque Bonds, Issve of 1972, Electric System Revenue Bond Reserve Fund (the "Reserve Fund"). Section 11. Disposition!Of Bond Proceeds. The proceeds of the sale of the Bonds shall be received by the Treasurer and deposi~ as follows: (I) An amount (idcduding accrued interest, and premium, if any) equal to the total amount of interest payable on t~ Bonds from their date to August 1, 1982, plus one-half of the amount of interest payable on th~ Bonds from August 1, 1982 to August 1, 1983, shall be deposited in the Bond Service Account. (2) An amount su:Jk:ient to raise the balance in the Reserve Fund to the amount required by the 1972 Bond Resolution shall be transferred to the Fiscal Agent thereunder for deposit in said fund. (3) The balance $a11 be deposited in the Construction Account. The City may deposit m+ney received from any source in the Construction Account. The moneys set aside and placed in the Cetus.. . truction Account shall remain therein until from time to time expended for the purposes for which tJ:1e Bonds were issued. Moneys in the Construction Account may be invested in any authorized investments, provided that the maturity or maturities thettof shall not be later than the date or dates on which moneys must be available to meet scheduled C~nstruction Account expenditures. If any sum remains in said Construction Account after the full accomplishment of the purposes for which the Bonds were issued, it shall be transferred to and placed in !:be Electric Revenue Fund. ~. Section 12. Electric Re1epue Fund. The Treasurer shall deposit the gross revenues of the enterprise as received in the Electric R+venue Fund. The Treasurer shall allocate or transfer moneys from the Electric Revenue Fund in the amounts and priority as follows. Section 13. Bond Servicte Account. First, on or before the twentieth day of each calendar month so long as any of the Bondsl are outstandittg, in addition to the transfer required by Section 14 of 6 ~ i""'\ 8/1/78 /......-.., the 1972 Bond Resolution, the Treasurer shall allocate to the Bond Service Account the following amounts: (1) one-sixth of tM interest which will become due and payable on the outstanding Bonds and parity bonds within the next ~nsuing six months, except that for any interest payment due on or before August 1, 1983, the monthly ,um allocated shall be the interest which will become due and payable less the amount of any funded int~rest placed in the Bond Service Account pursuant to Section 11 ( 1) hereof divided by the number of mo*hs remaining in said period; and (2) one-twelfth of the principal amount which will mature and be patable on the outstanding Bonds and parity bonds within the next ensuing twelve months. In the event tIat the allocations for each calendar month as aforesaid are less than the amounts required for that mo$.th because of lack of funds or for any other reason the deficiency shall be added to and become a part ()f the allocations required for the following calendar month. In any event, such sums! shall be allocated so that the full amount required to pay, as it becomes due, the interest on said Bon~s and parity bonds and any installment of principal on said Bonds and parity bonds shall be set asi4e in the Bond Service Account at least five days prior to the date the installment of interest or p~ipal becomes due. Any moneys required to ihe set aside in the Bond Service Account may be prepaid in whole or in part by being earlier set aside therein, and in that event the monthly allocation which has been so prepaid need not be made at the time! appointed therefor. In any event at least five days prior to the due date of any installment of interest i or principal on such Bonds and parity bonds all sums required for the payment thereof must be in "e Bond Service Account. Moneys in the Bond Settice Account may be temporarily invested in any authorized investments provided that the maturity or :+taturities thereof shall not be later than the date or dates on which money must be available in the Bo~ Service Account. The Bonds and the intet1st coupons shall recite that they are payable from the Electric Revenue Fund, but notwithstanding suclJ recital shall be paid from the Bond Service Account, or from a Redemption Fund established in accordan~ with Section 9(b) of this Resolution. If after all of the Bond~ and any parity bonds have been redeemed and cancelled or paid and cancelled (or provision is macle therefor) there. are moneys remaining in the Bond Service Account or Reserve Fund said moneys shluI be transferred to the Electric Revenue Fund. Section 14. M & 0 Accp..t. Second, the Treasurer shall allocate to the M & 0 Account amounts sufficient for the payment of [the maintenance and operation expenses of the electric system as said expenses become due and p~ble. Section 15. Reserve Fn+4. Third, on or before the twentieth day of each calendar month, but only so long as any of the 1 ~12 Bonds are outstanding, the Treasurer shall make the transfer to the Reserve Fund required by ~G>n 16 of the 1972 Bond Resolution. Moneys in the Reserve Fund shall be held, used and invested in! accordance with the 1972 Bond Resolution, including the payment of principal and interest on the !1972 Bonds, the Bonds and any other parity bonds, in the event that moneys in the Bond Service Itund (in the case of the 1972 Bonds) or the Bond Service Account (in the case of the Bonds and any ~ther parity bonds) are insufficient therefor. For that purpose, Section 16 of the 1972 Bond Resolution !shall be construed to require the Fiscal Agent to withdraw and transfer sufficient moneys from the Res~rve Fund to the Bond Service Fund or to the Treasurer for deposit in the Bond Service Account, as the: case may be. ~ Section 16. R & R Acqo..nt. Fourth, on or before the twentieth day of each calendar month as long as the Bonds are outstap.ding the Treasurer shall allocate to the R & R Account an amount equal to 1 % of the revenues recei.,fed in the preceding calendar month until a balance is established, or reestablished therein equal to ~% of the depreciated book value of the land, general plant and equipment which constitute a portion of the enterprise. The moneys contained in said account shall be used for 7 8/1/78 I" ~ /~ transfer to the Bond Service Account or to the Bond Service Fund held by the Fiscal Agent under the 1972 Bond Resolution, as th~ case may be, to prevent default in payment of the principal and interest on the Bonds or any parity bonds, or for extraordinary maintenance and repairs, renewals and replacements to the system, but not for .dditions to and extensions of the system, provided, however, that when moneys are used for such p4rpose or purposes, they shall be returned by the transfer of an additional 1 % of the revenues of the pteceding calendar month commencing no later than 90 days after such use. If at any time the balance ip. the R & R Account exceeds the balance herein identified, said excess may be transferred to the Electric Revenue Fund. Section 17. Elecmc Sy;tem Surplus bvenue Fund. All moneys remaining in the Electric Revenue Fund after all transfers requJred hereunder have been made, and all covenants contained herein have been duly performed shall ~e transferred to the Electric System Surplus Revenue Fund heretofore created under Resolution Nq. 76R-276 of the City Council, adopted May 25, 1976, authorizing the issuance of the Electric Revtnue Bonds, Second Issue (Subordinated) of 1976, and shall be applied in accordance with the pro~sions of said Resolution No. 76R-276 so long as any of said Electric Revenue Bonds, Second Issuti (Subordinated) of 1976, remain outstanding. Subject to said Resolutipn No. 76R-276, moneys in the Electric System Surplus Revenue Fund may be: (1) invested in any ~.thorized investments; (2) transferred to the Redemption Fund to be used for the redemption of any of said Bonds which are subject to call and redemption prior to maturity or for the purchase from tinte to time in the open market of any outstanding Bonds whether or not subject to call and redemptio~ (irrespective of the maturity or number of such Bonds) at prices and in such manner, either at public .,r private sale, or otherwise, as the City in its discretion may determine, but such purchase price (includ~g brokerage and other charges, but excluding accrued interest) shall not exceed 1 031h % of the prinq.pal amount or the redemption price of the callable Bonds on the next redemption date, whichever i$ less; or (3) used for any lawful purpose of the City, including but not limited to the security and I*yment of other indebtedness incurred in connection with the enterprise. Section 18. InvesuneDttf. Except as hereinbefore provided, obligations purchased as investments of moneys in any of the fund, and accounts in which investments are authorized shall be deemed at all times to be a part of such ftu!1ds and accounts and any income realized from such investments shall be credited to such funds aneJi accounts and any losses resulting from such investments shall be charged to such funds and accounts. 'ItIe Treasurer shall sell at the best price obtainable or present for redemption any obligations so purchased 1vhenever it may be necessary to do so in order to provide moneys to meet any payment or transfer froII1 such funds and accounts. For the purpose of determining at any given time the balance in any such funds and accounts any such investments constituting a part of such funds and accounts shall be valued at the then estimated or appraised market value of such investments. Moneys in all funds and accounts described in Section 10 hereof shall be invested only in authorized investments. Section 19. Warranty. Tbe City shall preserve and protect the security of the Bonds and the rights of the bondholders and warr~t and defend their rights against all claims and demands of all persons. ~. Section 20. Covenants. iSo long as any of the Bonds are outstanding and unpaid, the City makes the following covenants with tJre bondholders under the provisions of Section 1210 of the City Charter (to be performed by the City 4>r its proper officers, agents or employees) which covenants are necessary, convenient and desirable to ~ecure the Bonds and tend to make them more marketable; provided, however, that said covenants '0 not require the City to expend any moneys other than the revenues of the enterprise. Covenant 1. Punctual .,.yment. The City covenants that it will duly and punctually payor cause to be paid the principal of ~d interest on every Bond issued hereunder, together with the premium 8 I, ~ .~ 8/1/78 ~ thereon, if any be payable, ~n the date, at the place and in the manner mentioned in the Bonds and coupons and in accordance \fith this Resolution, and that the payments into the Bond Service Account will be made, all in strict cohformity with the terms of said Bonds and of this Resolution, and that it will faithfully observe and p~orm all of the conditions, covenants and requirements of this Resolution and all resolutions supplem$1'tal thereto and of the Bonds issued hereunder, and that time of such payment and performance is' of the essence of the City's contract with the bondholders. Covenant 2. Discharge! Claims. The City covenants that in order to fully preserve and protect the priority and security of t~e Bonds the City shall pay from the Electric Revenue Fund and discharge all lawful claims for labor, $1aterials and supplies furnished for or in connection with the enterprise which, if unpaid, may becom~ a lien or charge upon the property or revenues of the enterprise prior or superior to the lien of the Bo'ds and impair the security of the Bonds. The City shall also pay from the Electric Revenue Fund all ~es and assessments or other governmental charges lawfully levied or assessed upon or in respect of ithe enterprise or upon any part thereof or upon any of the revenues thereof. Covenant 3. Commenc+ Acquisition and Construction. The City covenants that as soon as funds are available therefor, the qity will cOmn1ence the accomplishment of the purposes for which the Bonds are issued and will cpmtinue the same to completion with all practicable dispatch and in an economical manner. l~ Covenant 4. Operate :Q.tetprise in E46cient and Economical Manner. The City covenants and agrees to operate the enterp~se in an efficient and economical manner and to operate, maintain and preserve the enterprise in g~ repair and working order. Covenant 5. Against StJt, Eminent Uomain, Existing and Future Agreements. Except as pro- vided herein, the City covenaPts that the eI1t:erprise shall not be mortgaged or otherwise encumbered, sold, leased, pledged, any chafge placed thereon, or disposed of as a whole or substantially as a whole unless such sale or other disItosition be so arranged as to provide for sums adequate to provide for the immediate payment of thelprincipal of and interest on and premiums, if any, due upon the call and redemption thereof, of the Bo,ds, payment of which is required to be made out of the gross revenues of the enterprise. The City furth~ Covenants that the revenues from the enterprise or any other funds pledged or otherwise made available tp secure payment of the principal of and interest on the Bonds shall not be mortgaged, encumbered, s~1d, leased, plttdged, any charge placed thereon, or disposed of or used except as authorized by the t$ms of this Resolution. The City further covenants that it will not enter into any agreement which irp.pairs the operation of the enterprise or any part of it necessary to secure adequate revenues to pa.y the principal and interest of the Bonds or which otherwise would impair the rights of the bon~olders with respect to the revenues of the enterprise. If any substantial part of the enterprise is sold! the payment therefor shall either be used for the acquisition and/ or construction of improvements! and extensions of the enterprise or shall be placed in the appropriate funds or accounts and shall be used to payor call and redeem said Bonds and any parity bonds in the manner provided in this Resolution and any parity bond resolution. The City covenants that ,any amounts received as awards as a result of the taking of all or any part of the enterprise by the I~Wful exercise of eminent domain, if and to the extent that such right can be exercised against such prop~rty of the City, shall either be used for the acquisition and/or construction of improvements and extensi04 of the enterprise or shall be placed in the appropriate funds or accounts and shall be used to payor cat and redeem said Bonds and any parity bonds in the manner provided in this Resolution and any parity bond resolution. The City win not sell, lea~ or otherwise encumber any part of the Electric System except properties or facilities no longer useful 'or necessary to its efficient and economical operation. Any proceeds from the sale or disposition of! any part of the Electric System shall be placed in the Electric Revenue Fund. 9 L j 8/1/78 ,..... ~ "..........". Covenant 6. Inmranc~ The City covenants that it shall at all times maintain with responsible insurers all such insurance ~n the enterprise as is customarily maintained by similar utilities systems with respect to works and Itoperties of like character against accident to, loss of or damage to such works or properties and loss pi revenues insurance. If any useful part of the enterprise shall be damaged or destroyed such part shall be restored to use. The money collected from insurance against accident, loss or damage shall be usep for repairing or rebuilding the lost, damaged or destroyed works and properties, and to the extent 'not so applied, shall be applied to the retirement of said outstanding and unredeemed Bonds and any parity bonds issued for the enterprise and for such purpose paid into the appropriate funds or accountS. The money collected from loss of revenues insurance shall be deposited in the Electric Revenue Furid. The City shall also mJlintain with responsible insurers worker's compensation insurance and insurance against public liabi$ty and property damage to the extent reasonably necessary to protect the City and the bondholders. Notwithstanding the for~8oing, the City may provide any insurance required by this Covenant 6 through a self-insurance pro~am. Covenant 7. Records ~ Accounts. The City covenants that it shall keep proper books of record and accounts of the eQterprise, sepankte from all other records and accounts, in which complete and correct entries shall be ~ade of all transactions relating to the enterprise. Said books shall at all times be subject to the inspec~(Jm of the holders of not less than 10% of the outstanding Bonds or their representatives authorized in rwriting. The City covenants that ~. will cause the books and accounts of the enterprise to be audited annually by an independent certified po. "lic accountattt or firm of certified public accountants and shall furnish a copy of the audit report, u on request, to any bondholder. Covenant 8. CoUection!of Charges. The City will permit no free use or services of the Electric System. The City will pay ~omptly into the Electric Revenue Fund from the City's General Fund (or other available funds) for ~11 City use ana services of the Electric System. The City will not grant or establish within any class of ~trvice preferential or discriminatory rates, fees or charges for use and services of the Electric Systent For the purposes of setting such rates, fees and charges, service located outside the city limits of the City of Anaheim may be considered as separate classes of service. The City covenants that it shall at .. times during the period any of the Bonds are outstanding maintain and enforce valid regulations for t* payment of bills for electric service and that such regulations shall at all times during such period pr~de that the City shall discontinue electric service to any user whose electric bill has not been paid within the time fixed by said regulations. .r""'\ Covenant 9. Rates and !~barges. The City shall and hereby covenants that it shall prescribe, revise and collect such chargfa for the services and facilities of the enterprise which, after making allowances for contingencies apd error in the estimates, shall be at least sufficient to pay the following amounts in the order set fot1h: (a) The interest onj and principal payments of the outstanding Bonds and parity bonds as they become due and p4yable; (b) All current explfmes for the necessary and reasonable maintenance and operation expenses of the enterprise as said .~penses become due and payable; (c) All payments rctquired for compliance with this Resolution including transfers required to be made from the El~tric Revenue Fund to other funds and accounts; (d) All payments ~quired for compliance with Resolution No. 76R-276, referred to in Section 17 hereof; and 10 8/1/78 "., ~ i~ (e) All payments Jtequired to meet any other obligations of the City which are charges, liens, encumbrances upon or payable from the revenues of the enterprise; and the charges shall be so !fixed that the net revenues shall at least equal 1.10 times the amounts payable under (a), providedithat so long ~ any of the 1972 Bonds remain outstanding said charges shall be so fixed that the net l revenues shall at least equal 1.25 times the amounts payable under (a). Covenant 10. No PrioIftY for Additi..naI IDdebtedness. The City covenants that no additional indebtedness shall be incurred/pursuant to said Section 1210 or any law of the State of California having any priority in payment of prihcipal or interest out of the revenue of the enterprise over the Bonds. Covenant 11. Limits o~ :Parity Bonds. Parity bonds may be issued to finance or re-finance any repairs, improvements, enlargh:tents or extensions of the enterprise and to refund any Bonds or parity bonds then outstanding, provi~ed that the City covenants that, except for bonds issued to refund Bonds or parity bonds, no addition41 indebtedness evidenced by revenue bonds, revenue notes or any other evidence of indebtedness pay~e out of the revenues of the enterprise and ranking on a parity with the Bonds shall be created or iri;urred unless: First: The City is ~ot in default under the terms of this Resolution. Second: The net r.venues of the enterprise, calculated on sound accounting principles, as shown by the books of tIt. City for each of the last two completed fiscal years prior to the adoption of the resolution of awar'of bids for such additional indebtedness as shown by an audit certificate or opinion of an indepe.dent certified public accountant or firm of certified public accountants employed by the City, pJus, at the option of the City, any or all of the items hereinafter in this covenant designated (a),! shall have amounted to at least 1.10 times the amount of principal and interest which will becomt due and payable in the fiscal year next succeeding the fiscal year in which such additional indebted*ss is incurred on all Bonds and parity bonds, and, so long as any of the 1972 Bonds remain outs.nding, at least 1.25 times the maximum annual debt service (as defined in the 1972 Bond Resol.tion) in any 1S.seal year thereafter on all indebtedness to be outstanding immediately subsequent ~o the incurring of such additional indebtedness. For said purposes, principal requirements sqaJI be construed to include mandatory annual sinking fund installments for any series of parity bbnds issued or to be issued as term bonds. For the purposes of this povenant, the gross revenues of the enterprise shall not include any sum transferred from the Construction Account under the provisions of this Resolution. The items any or all of which may be added to such gross revenues for the purpose of applying the restriction contained in this covenant are the followiqg: ( a) An allowance J!or earnings arising from any increase in the charges made for service from the enterprise which !has become effective prior to the incurring of such additional indebtedness but which, during all or ~y part of said last two completed fiscal years, was not in effect, in an amount equal to 95% of $1e amount by which the gross revenues would have been increased if such increase in charges had b~n in effect during the whole of said last two completed fiscal years, as shown by the certificate at opinion of an independent certified public accountant or firm of certified public accountants emplqyed by the City. The issuance of parity b~ds shall also be subject to the provisions of Covenant 10 of Resolution No. 76R-276, referred to in Section 17 hereof. .~ Covenant 12. Arbitrage.; The City covenants that under no circumstances shall any initial investment, subsequent investqaent or reinve$tment of the proceeds of the Bonds be made in such a manner as to result in the 10$ of exemption from federal income taxation of interest on the Bonds. Except as permitted during "tqruporary periods" (as such term is defined in the proposed Income Tax Regulations referred to herein) by said proposed Income Tax Regulations, the proceeds of the Bonds 11 i I 8/1/78 I"" ~ .~. shall not be invested directbr or indirectly in taxable obligations so as to produce a yield which is materially higher than the yi~ld on the Bonds which results in the Bonds constituting "arbitrage bonds" within the meaning of Sectio, 103(c), Internal Revenue Code of 1954, as amended, and the proposed Income Tax Regulations issbed thereunder; but such sums may be otherwise invested if and when such Code and any regulat~s thereunder permit the investment to be made in the manner made without causing the Bonds to become "arbitrage bonds." Section 21. Lost, Stol.. Destroyed, or Mutilated Bonds. In the event that any Bond or any interest coupon pertaining th4reto is lost, stolen, destroyed or mutilated, the City will cause to be issued a new Bond or coupon sim.ar to the original to replace the same in such manner and upon such reasonable terms and conditi~ns, including the payment of costs and the posting of a surety bond if the City deems such surety bon4 necessary, as may from time to time be determined and prescribed by resolution. The City may aut~orize such new Bond or coupon or coupons to be signed and authenticated in such manner as it deternaines in said resolution. ~, Section 22. canceUa~... of Bonds. All Bonds and coupons surrendered to the Treasurer or any paying agent of the City for . ayment upon maturity or for redemption shall upon payment therefor be cancelled immediately. Any... onds purchased by the City as authorized herein together with all unpaid coupons pertaining thereto s~ll be cancelled forthwith and shall not be reissued. Section 23. Consent of! 'ondholders. The consents of bondholders provided for in this section shall relate solely to the am~ment, waiver or modification of the covenants specified in Section 20 hereof and shall not be effectiVe to waive or modify any other provisions of this Resolution or any other proceedings for the issuance .r the Bonds. Any act relating to the amendment, waiver or modification of any of the said covenants j::onsented to by bondholders holding 60% in aggregate principal amount of the outstanding Bonds, excijlsive of Bonds, if any, owned by the City, shall be binding upon the holders of all of the Bonds and intelrest coupons, whether such coupons be attached to Bonds or detached therefrom, and shall not be dejemed an infringement of any of the provisions of this Resolution, whatever the character of such act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of thi$ Resolution, and after such consent relating to such specified matters has been given, no bondholder or holder of any interest coupon, whether attached to a Bond or detached therefrom, shall have any rig"t or interest to object to such action or in any manner to question the propriety thereof or to enjoin pr restrain the City or any officer thereof from taking any action pursuant thereto. Bondholders may consent by affirmative vote at a bondholders' meeting or may consent in writing without a meeting, all as hereinafter provided. No such amendment, waiver or modification shall be made which will permit (a) a change in the maturity or term of redemptio~ of the principal of any Bond or any installment of interest thereon or a reduction in the principal amoiIot of or redemption price or redemption premium or rate of interest upon any Bond without the consent! of the holder of such Bond; or (b) a reduction of the percentage of the principal amount of Bonds the: vote or consent of which is required to effect any such amendment. (a) Calling Bondhitlders' Meeting. If the City shall desire to obtain any such consent it may call a meeting of bcl>ndholders, by resolution, for the purpose of considering the action, the consent to which is desired. (b) Notice of Meeting. Notice specifying the purpose, place, date and hour of such meeting shall be published once i* a financial newspaper or journal of national circulation published in the City of New York, New York, not less than sixty days and not more than ninety days prior to the date fixed for the meetin~ Such notice shall set forth the nature of the proposed action, consent to which is desired. If any ot the Bonds shall be so registered as to be payable otherwise than to bearer, the City Clerk of the Ci~ shall, on or before the first publication of such notice, mail a similar 12 8/1/78 r' .~ >"""'" notice, postage prepaid, to the respective registered owners thereof at their addresses appearing on the bond registry books. The place, date and hour of holding such meeting and the date or dates of publishing and mailing such notice shall be detennined by the City, in its discretion. The actual receipt by any bondholder of notice of any such meeting shall not be a condition precedent to the holdin$of such meeting, and failure to receive such notice shall not affect the validity of the proceedings thereat. A certificate by said City Clerk, approved by resolution of the City Council that the ~eeting has been called and that notice thereof has been given as herein provided shall be concltlsive as against all parties and it shall not be open to any bondholder to show that he failed to r~eive notice of such meeting. (c) Voting Qualiflrations. Any bondholder may, prior to any such meeting, deliver his Bond or Bonds to any lagency designated by the City for the purpose, and shall thereupon be entitled to receIve an appropriate receipt for the Bond or Bonds so deposited, calling for the redelivery of such Bond pr Bonds at any time after the meeting. The Treasurer shall prepare and deliver to the chainnan bf the meeting a list of the names and addresses of the registered owners of Bonds, with a statem~nt of the maturities and serial numbers of the Bonds held and deposited by each of such bondho~rs, and no bondholder shall be entitled to vote at such meeting unless his name appears upon ~ch list or unless he shall present his Bond or Bonds at the meeting or a certificate of deposit theteof, satisfactory to the City, executed by a bank or trust company. No bondholder shall be pern}itted to vote with respect to a larger aggregate principal amount of Bonds than is set against his naine on such list, unless he shall produce the Bonds upon which he desires to vote, or a certificate of deposit thereof as above provided. (d) I ssuer-owned ~onds. The City covenants that it will present at the meeting a certificate, signed and verified by 0* member of the City Council and by the Treasurer stating the maturities and serial numbers of al! Bonds owned by, or held for account of, the City, directly or indirectly. No person shall be permitted at the meeting to vote or consent with respect to any Bond appearing upon such certificate, or ~y Bond which it shall be established at or prior to the meeting is owned by the City, directly or inUirectly, and no such bond (in this Resolution referred to as "issuer-owned bond") shall be counted iin determining whether a quorum is present. (e) Quorum and Procedure. A representation of at least 60% in aggregate principal amount of the Bonds th~n outstanding (exclusive of issuer-owned Bonds) shall be necessary to constitute a quorum at My meeting of bondholders, but less than a quorum may adjourn the meeting from time to tin1e, and the me~ting may be held as so adjourned without further notice, whether such adjournment shall have been had by a quorum or by less than a quorum. The City shall, by an instrument irl writing, appoint a temporary chairman of the meeting, and the meeting shall be organized by the election of a permanent chainnan and a secretary. At any meeting each bondholder shall be entit~d to one vote for every $5,000 principal amount of Bonds with respect to which he shall be entitl~ to vote as aforesaid, and such vote may be given in person or by proxy duly appointed by an instrlument in writing presented at the meeting. The City, by its duly authorized representative, may attend any meeting of the bondholders, but shall not be required to do so. (f) Vote Required. At any such meeting held as aforesaid there shall be submitted for the consideration and action of the bondholders a statement of proposed action, consent to which is desired, and if such actiQn shall be consented to and approved by bondholders holding at least 60% in aggregate amount of the Bonds then outstanding (exclusive of issuer-owned Bonds) the chairman and secretary of the meeting shall so certify in writing to the City, and such certificate shall constitute complete evidence of consent of bondholders under the provisions of this Resolution. A certificate signed and verified by the chairman and the secretary of any such meeting shall be conclusive evidence and the only competent evidence of matters stated in such certificate relating to proceedings taken at such meeting. (g) Written Consent of Bondholders. If the City shall desire to obtain any such consent in writing, without a meetingj of bondholders, the City Council may, by resolution, propose the action, ,~ 13 8/1178 ~ ~ ~ I .to which consent is desited. A copy of such resolution, together with a request to bondholders for their consent to the ac~on proposed therein, shall be published once in a financial newspaper or journal of national circuJation published in the City of New York, New York. If any of the Bonds shall be so registered as to be payable otherwise than to bearer, the City Oerk of the City shall, on or before the publicajtion of such resolution and request, mail a copy thereof to each registered owner at the address aWearing on the bond registry books. The actual receipt ~y any bondholder of such resolution and request shall not affect the validity of the proceedings for tHe obtaining of such consent. A certificate by said City Oerk, approved by resolution of the City cbuncil, that said resolution and request has been published and mailed as herein provided shall be ~onc1usive as against all parties, and it shall not be open to any bondholder to show that he failed tc!l receive such resolution and consent. Each written conselft shall be accompanied by proof of ownership of the Bonds for which such consent is given. Proof pI ownership shall be made in such manner as shall be prescribed by the resolution proposing the: action. Any such written consent shall be binding upon the holder of the Bonds giving such consept and on any subsequent holder (whether or not such subsequent holder has notice thereof) unleSs such consent is revoked in writing by the holder giving such consent or by the subsequent hold,r. To be effective, any revocation of consent must be filed before the adoption of the resoluti$1 accepting consents as hereinafter provided. After the holders o~ at least 60% in aggregate principal amount of the Bonds then outstanding (exclusive of issuer-own~d Bonds) shall have consented in writing, the City Council shall adopt a resolution accepting suc! consents and such resolution shall constitute complete evidence of the consent of bondholders under this resolution. (h) Publication of jConsent. Notice specifying the amendment, waiver or modification that has received the consent! of bondholders as required by this section shall be published once in a financial newspaper or j01ltnal of national circulation published in the City of New York, New York, not less than sixty days foflowing the final action in the proceedings for the obtaining of such consent. Said notice is only for the!ittformation of bondholders and failure to publish such notice or any defect therein shall not affect tie validity of the proceedings theretofore taken in the obtaining of such consent. Section 24. Bond aDd QQupon Forms. The Bonds shall be payable to bearer, shall be issued in negotiable form, and shall be ~tgotiable, and the form of said Bonds and interest coupons thereof shall be substantially as follows: UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF ANAHEIM EL~TRIC REVBNUE BOND, ISSUE OF 1978 N 0.___. ___. _ .n___n..n._._.____.. $5,000 ~. The CITY OF ANAHEt4, a municipal corporation situated in the County of Orange, State of California, FOR VALUE ~EIVED, hereby promises to pay, solely from the Electric Revenue Fund, as hereinafter providedi t.o the bearer, on August 1, _______., upon presentation and surrender of this bond, the sum of FIVE 1faOUSAND DOLLARS, with interest thereon at the rate of ..__.. % per annum, payable semiannually qn the first days of February and August of each and every year from the date hereof until this bond is paid, upon presentation and surrender of the respective interest coupons hereto attached; provided, howt"'er, that if at the maturity date of this bond or, if the same is redeemable and shall be duly called for red~l1ption, then at the date fixed for redemption, funds are available for the 14 1_ t'" ~ 8/1178 .~o payment or redemption there~f, as provided in the resolution hereinafter mentioned, this bond shall then cease to bear interest. Both principal and interest are payable in lawful money of the United States of America, at the office of the treasurer of the City of Anaheim in Anaheim, California, or, at the option of the holder, at any paying~gent of the City in Los Angeles or San Francisco, California, Chicago, TIlinois, or New York, New !york. This is one of a duly apthorized issue of bonds of the City designated "Electric Revenue Bonds, Issue of 1978," hereinafter catled the "bonds," all of which have been issued pursuant to Section 1210 of the City Charter of the City ~f Anaheim and Ordinance No. 2980 of the City Council of said City, for the purpose of the constructi~ and acquisition of facilities, property and rights related to the generation, transmission and distribution! of electrical energy, and the creation of said issue and the terms and conditions of the bonds are t*'ovided for by the resolution of the City Council of said City authorizing the bonds adopted August 1, 1978, designated Resolution No. re.:R:-:!t_eA_, and this reference incorporates said resolution, said Section .1210 and said ordinance, and by acceptance hereof the holder of this bond and coupon hereto atULched assents to said terms and conditions. Said resolution is adopted under, and this bond and the interest coupons hereto attached are issued under and are to be construed in accordance with said Charler, said ordinance and the laws of the State of California. This bond and the inter~ hereon and any premium upon the redemption hereof are not a debt of the City of Anaheim, nor It . legal or equitable pledge, charge, lien or encumbrance upon any of its property or upon any of its in~()me, receipts, or revenues, except the gross revenues of the enterprise (as defined in said resolution) plePeed to its payment, and the principal of and the interest on this bond and any premium upon the rede*ion hereof are payable solely from the gross revenues of the enterprise pledged to its payment and s~d City is not obligated to pay such principal, interest and premium except from said gross revenues. the Electric Revenue Fund is established under and pursuant to said Section 1210 of the City Charter, said Ordinance No. 2980 and said resolution, and under the provisions of said resolution the gross reillenues of the enterprise are required to be deposited to the credit of said Electric Revenue Fund and ,sed only for the purposes authorized by said resolution, including the payment of principal and intejIest of the issue of bonds of which this is one. By the terms of said Sectipn 1210 of the City Charter and said Ordinance No. 2980 and by covenant expressed in said resolution, ~e City is obligated to prescribe, revise and collect charges for the services and facilities of the electric sy~em of the City such as to provide revenues sufficient to pay the interest on and principal of the bonds as !they become due and payable in addition to all other payments required for compliance with said reso~on and the necessary and reasonable maintenance and operation costs of the electric system, is prohi.ited from issuing bonds having any priority with respect to payment from the gross revenues of the ente:t>rlse, and is subject to conditions with respect to any sale of said electric system. In the manner provid+d in said resolution, any or all of the obligations referred to in this para- graph and certain other obligations mentioned in said resolution may be waived with the consent of the holders of 60% in aggregate principal amount of the outstanding bonds, exclusive of issuer~wned bonds. This bond is callable and redeemable prior to maturity in accordance with the provisions for redemption endorsed hereon. This bond and the cou*s hereto attached are negotiable instruments and shall be negotiable by delivery. This bond may be rttfstered either as to principal only or as to both principal and interest, in accordance with the provision~ for registration endorsed hereon. It is hereby certified and !recited that any and all acts, conditions and things required to exist, to happen and to be performed precedent to and in the incurring of the indebtedness evidenced by this bond and in issuance of this ~nd exist, have happened, and have been performed in due time, form and manner as required by ~ Constitution and laws of the State of California and the City Charter of the City of Anaheim and th*t this bond, together with all other indebtedness of the City pertaining to the aforesaid electric system, islwithin every debt and other limit prescribed by the Constitution and laws of the State of California and s~d Charter. ~. 15 I I 8/1/78 I""' 1"""\ IN WITNESS WHEREDF, said City of Anaheim has caused this bond to be signed by the Mayor and the City Treasurer of sai~ City by their facsimile signatures, countersigned by the City Clerk of said City, and sealed with the cd,rporate seal of said City, and the interest coupons hereto attached to be signed by the City Treasurerby his facsimile signature, and has caused this bond to be dated August 1, 1978. .~ Mayor of the City of Anaheim, California COUNTERSIGNED: City Clerk ~ the City of Anaheim, ~alifomia City Treasurer of the City of Anaheim, California (SEAL ) (COUPON FORM) . On the first day of The CITY OF ANAHEIM, CALIFORNIA, will pay to the bearer, at the office of the Treasurer of the City Jr Anaheim in Anaheim, California, or, at the option of the holder, at any paying~'~ent of the City in Los Angeles or San Francisco, California, Chicago, lllinois, 1" New York, New York, out of the Electric Revenue Fund of said City and not 0 .of any other fund or moneys of the City, the sum shown hereon in lawful mone .of the Uniteq States of America, being the interest then due on its iSLECfRIC ItEVENUE BOND, ISSUE OF 1978 NO. dated August 1, 1978, subject to the provisions on the reverse hereof City Treasure~he City of Anaheim,: . 'fornia On the reverse side of t.e coupon there shall be printed substantially the following: (REVERSE OF COUPON) If the bond to which thi~ coupon is attached is redeemable and is duly called for redemption on a date prior to the maturity d*e of this coup<m, this coupon will be void. ~ PROVISIONS FOR REDEMPTION Unless this bond matures!QI1 or prior to August 1, 1988, it is redeemable in the manner and subject to the terms and provisions, *I1d with the effect, set forth in the resolution referred to on the face of this bond, at the option of the !City, on Augus.t 1, 1986, or on any interest payment date thereafter prior to maturity, upon at least 30 IJays' prior notice published in a newspaper of general circulation in the County of Los Angeles, California, and in a financial newspaper or journal of national circulation published in or near the City qf New York, New York, at a redemption price for each redeemable bond equal to 100~ % of the princJpal amount thereof plus ~ % of such principal amount for each whole twelve months' period and for' any remaining fraction of a twelve months' period from the redemption 16 8/1178 r' """ date to the maturity date of SJ,Ich bond, but the redemption price, including premium payable at any time upon redemption, shall not e~ceed 103~ % of such principal amount. Said resolution also provides for the mailing of notice of redetnption to the owners of bonds registered as to both principal and interest. l~ PROVISIONS FOR REGISTRATION This bond may be regi1tered in the name of any person as the registered owner hereof, either as to principal only or as to bcfh principal and interest, and, if registered in either of said forms may be changed to registration in th~ other of said forms or discharged from registration. Each registration, transf€. er after registration, change of form of registration, or discharge from registration of this bond shafI be entered by the Treasurer of the City in books kept by him for the purpose, and noted by him i~ the registration blank below. Registration as to principal only shall not affect the negotiability by ~Iivery of the coupons pertaining hereto. Upon registration as to both principal and interest, all uh&atured coupons pertaining hereto shall be surrendered to said officer and shall be preserved. So long as this bond is registered, no transfer hereof shall be valid for any purpose unless made by the registered owner and rentered and noted as herein provided, and the principal hereof and any redemption premium shall b4 payable only to the registered owner, or to his order. Interest on this bond, if registered as to both principal and interest, shall be payable to the person whose name appears upon the registry books as the! registered owner hereof at the close of business on the tenth day preceding the interest payment date, or; to his order. If this bond is registered as to both principal and interest and its registration is changed! to registration as to principal only, or if it is discharged from registration, there shall be attached theretq coupons representing interest hereon to become due thereafter to the date of maturity hereof. In lieu t.ereof, and upon surrender and cancellation hereof, the Treasurer in his discretion may issue in exch~ge therefor a new bond, with such coupons attached, identical with this bond, except for the previous ,notations on the registration blank hereon, and except that the signatures on the new bond shall be th~e of the persons holding office at the time of affixing such signatures. The issuance of any such new bond, or new coupons, shall be at the expense of the registered owner. Each discharge hereof frpm registration shall be effected by an entry on the registry books, and a notation in the blank below, that this bond is payable to bearer, whereupon this bond shall become an unregistered bearer instrument, negotiable by delivery as if it had never been registered. Each request for registration, transfer, chatige or discharge must be in form satisfactory to the Treasurer and must be made in writing, signed by !the registered Owner, or by his agent duly authorized in writing, or by the bearer, as the case may be. Date of RegisCration In ~:,ame Maunerof RegiICration Signature of Treasurer OM _ _ _ ~ _ _ _ _ _ ~ _ _ 0.. _ _ _ _. ___ _ _ _ _ __ __ _ ___ _ _ __ _. _ _____ __ __ _ ___.. _ __ _.. .. ___ _.... __.. __________..___________. _..__ _____.. _____ ..___.. ...__. _..________ ....___ ____......___..__. _.. __...... ------------------------------- .--------------,...-------.-..--..-.. .......-..----......--....---......-------. ---........-----......--...---......--------..-----..-------------..-------, ------------------------------- ---__________w_,.._...__._____..__ _..__.w....._...__._._._________ _________._____..___.._________...____.____..___________________... .~ Section 25. Temporary 1kmds. Any Bonds may be initially issued in temporary form exchangeable for definitive Bonds. The tenf.porary Bonds may be printed, lithographed or typewritten, shall be of such denominations as may bel determined by the City, shall be without coupons and may contain such reference to any of the provi~ions of this Resolution as may be appropriate. Every temporary Bond shall be executed and sealed ~y the City in substantially the same manner as provided in Section 7 hereof. If the City issues temporary Bonds it will execute and furnish definitive Bonds without delay and thereupon the temporary 'onds may be surrendered for cancellation at the office of the Treasurer, and the Treasurer shall deliver in exchange for such temporary Bonds an equal aggregate principal 17 I j 8/1178 I"" 1"""'\ amount of definitive Bonds Qf the same interest rates and maturities. Until so exchanged, the temporary Bonds shall be entitled to the same benefits under this Resolution as definitive Bonds issued hereunder. r~. Section 26. Proceedinffs Constitute Contract. The provisions of this Resolution and of any resolu- tion or order providing for tlie sale of the Bonds and awarding the Bonds and fixing the interest rate or rates thereon shall constitute ia contract between the City and the bondholders and the provisions thereof shall be enforceable by any ~ondholder for the equal benefit and protection of all bondholders similarly situated by mandamus, accoqmng, mandatory injunction or any other suit, action or proceeding at law or in equity that is now or n1;ay hereafter be authorized under the laws of the State of California in any court of competent jurisdictiQn. Said contract is made under and is to be construed in accordance with the laws of the State of Clfifornia. No remedy conferred heteby upon any bondholder is intended to be exclusive of any other remedy, but each such remedy is cum+lative and in addition to every other remedy and may be exercised without exhausting and without regan! to any other remedy conferred by the Charter, Ordinance No. 2980 or any law of the State of California': No waiver of any default or breach of duty or contract by any bondholder shall affect any subsequent d+fault or breach of duty or contract or shall impair any rights or remedies on said subsequent default otbreach. No delay or omission of any bondholder to exercise any right or power accruing upon any, default shall impair any such right or power or shall be construed as a waiver of any such default ori acquiescense therein. Every substantive right and every remedy conferred upon the bondholders may b~ enforced and exercised as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and the bondholder shall pre'liail, said bondholder shall be entitled to receive from the Electric Revenue Fund reimbursement for rea~nable costs, expenses, outlays and attorney's fees and should said suit, action or proceeding be abanpc>ned, or be determined adversely to the bondholders then, and in every such case, the City and the b+ndholders shall be restored to their former positions, rights and remedies as if such suit, action or procbeding had not been brought or taken. After the issuance and delivery of the Bonds this Resolution shall be irrepealable, but shall be subject to modification to the! extent and in the manner provided in this Resolution, but to no greater extent and in no other manner; Section 27. Defeasance.i Bonds shall no longer be deemed to be outstanding and unpaid if the City shall have made adequ~te provision for the payment, in accordance with the Bonds and this Resolution, of the principal, i*terest and premiums, if any, to become due thereon at maturity or upon call and redemption prior to q.aturity. Such provision shall be deemed to be adequate if the City shall have irrevocably set aside, in ~ special trust fund or account, moneys which when added to the interest earned or to be earned from t.e investment or deposit thereof shall be sufficient to make said payments as they become due. Moneys. so set aside may be invested in any direct obligations of, or obligations guaranteed by, the United Sta~s of America, or in obligations of any agency thereof, in which the City may lawfully invest its money and, to the extent not so invested, may be placed with banks as inactive deposits in the manner provided by law. ~ Section 28. Future Con~cts. Nothing herein contained shall be deemed to restrict or prohibit the City from making contra4ts or creating bonded or other indebtedness payable from the general fund of the City or from ta*s or any source other than the revenues of the enterprise as defined herein, and from and after the sale of the Bonds the general fund of the City shall not include the revenues of the enterprise and no contract or other obligation payable from the general fund of the City shall be payable from the revcinues of the enterprise, except as provided herein. Section 29. Severability. If any provision, or any portion thereof, contained in this Resolution, or the application thereof to any person or circumstance is held to be unconstitutional, invalid or 18 1"".. ~ 8/1/78 unenforceable, the remainder of this Resolution and the application of any such provision, or portion thereof, to other persons or circumstances shall be deemed severable and shall not be affected thereby, and this Resolution and the : Bonds shall remain valid and the bondholders shall retain all valid rights and benefits accorded to thejm under this Resolution, the City Charter, and the Constitution and laws of the State of California. !-\ Section 30. Substitu~. The Mayor Pro-Tern, any Deputy City Clerk, and any Deputy Treasurer, or any duly authorized subsfitute for the Treasurer, may act in the place and stead of the Mayor, the City Clerk, and the Treasu*er, respectively, in the performance of any and all things authorized or provided for in this Resolu~n, including the signing of Bonds and coupons, with like force and effect as if performed by said Maybr, City Clerk and Treasurer, respectively. Section 31. Effective '.te. This Resolution shall take effect upon adoption. ADOPTED, SIGNED \AND APPROVED this 1st day of Au Attest: <;('.J.J~dZ, , 'ty. . .~ .j 19 .'1 .~. ., ,-.. ~ STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss . CITY OF ANAHEIM ) I, LINDA D. ROBERTS, City Cl,.rk of the City of Anaheim, do hereby certify that ! the foregoing Resolution Not 78R-484 w~s introduced and adopted at a regular meeting provided bylaw, of. the City Cpunci1 of the City of Anaheim held on the 1st day of August, 1978~ by the following vote of the members thereof: AYES: COUNCIL MEMBERS: ~verh01t, Kaywood, Roth and Seymour NOES: COUNCIL MEMBERS: to tt ABSENT: COUNCIL MEMBERS: rJone AND I FURTHER CERTIFY that ~he Mayor of the City of Anaheim signed said Resolution No. 78R-484 on t~e 1st day of August, 1978. IN WITNESS WHEREOF, I have ~ereunto set my hand and affixed the seal of the City of Anaheim this 1st da~of August, 1978. (/ C~~~~EIM (SEAL)_ L l /"""'. t"""\ 8/1/78 EXHIBIT "A" NOTI<lE INVITING BIDS ON 542,000,000 ELECTRIC RtVENUE BONDS, ISSUE OF 1978 OF THE CITY OF ANAHEIM, CALIFORNIA '.,~ NOTICE IS HEREBY !GIVEN that sealed proposals for the purchase of $42,000,000 par value Electric Revenue Bonds of ttte City of An~eim, California, will be received by the City Council of the City at the place and UP! to the time below specified: TIME: Tu~sday, August 22, 1978 10:00 o'clock A.M. (P.D.S.T.) PLACE: Oft!ce of the City Clerk City Hall 204 East Lincoln Avenue Anaheim, California City of Anaheim % Linda D. Roberts City Clerk City Hall 204 East Lincoln Avenue Anaheim, California 92805 MAILEq BIDS: . OpeniDg of Bids: The ~4s will be reQeived by the City Clerk at the time above specified. The bids will be opened by the CltJ-1: immediately following receipt and will be presented to the City Council for award later that day. Issue: $42,000,000 desi~~ted "ELEC1'RIC REVENUE BONDS, ISSUE OF 1978," consisting of 8,400 bonds, numbered 1 to ~, both inclusive, of the denomination of $5,000 each, dated August 1, 1978. Maturities: The bonds ~Il mature in consecutive numerical order on August 1 in each year and in the amounts as follows: . PriDdpali Prind(W Prindplrl Year ADIOIIIItt Year Amount Year AmOllltt 1983...__....... $ 475,~ 1993......... ... $ 925,000 2003............ $1,725,000 1984............ 525,OO~ 1994.....__..... 975,000 2004__.....__... 1,850,000 1985..__........ 550,()()() 1995............ 1,025,000 2005............ 1,950,000 1986............ 575,00Q 1996............ 1,100,000 2006............ 2,075,000 1987............ 625,000 1997..........._ 1,175,000 2007..........._ 2,200,000 1988............ 675,00Q 1998......__.... 1,250,000 2008....._...... 2,350,000 1989........__.. 700,000 1999....... ..... 1,325,000 2009............ 2,500,000 1990........__.. 750,000 2000.........m 1,425,000 2010............ 2,650,000 1991............ 800,000 2001............ 1,525,000 2011............ 2,825,000 ,~ 1992............ 850,000 2002............ 1,625,000 2012........_.._ 3,000,000 1 Interest: The bonds shall! bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed 8% per annum, payble semiannually on the first days of February and August of each year. 1 II r' '"'" 8/1/78 Payment: Said bonds a$d the interest thereon will be payable in lawful money of the United States of America at the office of ~e City Treasurer of the City of Anaheim, in said City, or, at the option of the holder, at any paying: agent of the City in Los Angeles or San Francisco, California, Chicago, Illinois, or New York, New York. '~. I Registration: The bon~ will be coupon bonds registrable as to principal only or as to both principal and interest, and the form of 1registration may be changed, or the bonds discharged from registration, all in accordance with the protisions in the resolution providing for the issuance of the bonds ( the "Resolution") . Redemption: The bond~ maturing on or prior to August 1, 1988, shall not be subject to call or redemption prior to maturit~ The bonds maturing on or after August 1, 1989, or any of them, may be called before maturity and!redeemed, at the option of the City, on August 1, 1986, or on any interest payment date thereafter prict to maturity, at a redemption price for each redeemable bond. equal to 1 OO~ % of the principal a~nt thereof, plus ~ % of such principal amount for each whole twelve months' period and for any i remaining fraction of a twelve months' period from the date fixed for redemption to the maturity d~.e of such bo1\d, but the redemption price, including premium payable at any time upon redemption, s~l1 not exceed 103Yz % of such principal amount. All or any of the bonds subject to call may be called for redemption at anyone time. If less than all of the bonds are redeemed at anyone time, such bond~ shall be redeemed only by complete maturity or maturities as selected by the City Council at its 4iscretion. Purpose of Issue: Said ~onds are the third series of a total issue of $150,000,000 authorized at an election held in the City on !March 4, 1975, to finance the acquisition and construction of facilities, property and rights related t~ the generation, transmission and distribution of electrical energy for the City and its inhabitants. The proceeds of this series will be used primarily to pay a portion of the cost of acquiring an ownership interest in Units 2 and 3 of the San Onofre Nuclear Generating Station, now under construction, to pay interest on the bonds during the construction period, and to increase the bond reserve fund balar$::t. Security: Said bonds arq issued under and pursuant to Section 1210 of the Anaheim City Charter, procedural Ordinance No. 29~O of the City and the Resolution. In accordance.with said Section 1210, said Ordinance No. 2980 aid said Resolution, the bonds shall be special obligations of the City, payable both as to principal Jrnd interest and as to any premiums upon the redemption of any thereof prior to maturity only out of tJte Electric Revenue Fund and not out of any other fund or moneys of the City; provided, however, th*t this shall not preclude payment of principal, interest or premiums from certain other sources as. enumerated in the Resolution. nRMS OF SALE Interest Rate: The ma~um rate bid may not exceed 8% per annum, payable semiannually. Each rate bid must be a muJdple of Vs or ~o of 1 %. No bond shall bear more than one interest rate, and all bonds of the s~e maturity shall bear the same rate. Each bond must bear interest at the rate specified in the: bid from its date to its fixed maturity date. Only one coupon will be attached to each bond foteach installment of interest thereon, and bids providing for additional or supplemental coupons wi1J be rejected. /~, Award: The bonds shaf be sold for cash only. All bids must be for not less than all of the bonds hereby offered for sal~ and each bid shall state that the bidder offers par and accrued interest to the date of delivery, the Ptemium, if any, and the interest rate or rates not to exceed that specified herein, at which the bidder btfers to buy said bonds. Each bidder shall state in his bid the total interest cost in dollars and ~ "Canadian" or true interest rate, which shall be considered informative only and not a part of the bid. 2 8/1/78 ~ , .~ '..~. IIighest Bidder: The b~nds will be sold to the bidder making a bid conforming to the terms of the offering, and which, on tije basis of the lowest annual interest cost, determined in the manner here- inafter stated, is the best bi~. The mann~r of determining annual interest cost for the purpose of determining whether such in1erest cost is within the maximum specified herein, and for the purpose of determining which is the ibest bid received, is to double the semiannual rate, compounded semi- annually, necessary to disco~t the amounts payable at the respective principal and interest maturity dates under each offer to the date of the Bonds and to the purchase price stated in that offer, not including interest accrued to the date of delivery. The purchaser must paYi ctccrued interest from the date of the bonds to the date of delivery com- puted on a 360-day year basis. The cost of printing the bonds will be borne by the City. Right of Rejection: Th~ City reserves the right, in its discretion, to reject any and all bids and to the extent not prohibited ~y law to waive any irregularity on informality in any bid. Prompt Award: The qty will take action awarding the bonds or rejecting all bids not later than twenty-six (26) hours ~er the time herein prescribed for the receipt of proposals; provided that the award may be made ~er the expir~on of the specified time if the bidder shall not have given to the City Council notice in writing of the withdrawal of such proposal. PIaee of Delivery; Fun~. for Payment. Delivery of said bonds will be made to the successful bidder at Jeffries Banknote . pany, 1330 West Pico Boulevard, Los Angeles, California, or at any other place agreeable to both ... Ie successful bidder and the City. Payment for the bonds shall be made in Federal Reserve Bank F~ds or other ittlmediately available funds. Prompt Delivery; Cance~tion for Late Delivery: It is expected that the bonds will be delivered to the successful bidder withu;. ::30 days from the date of sale thereof. The successful bidder shall have the right, at his option, to caJlcel the contract of purchase if the City shall fail to execute the bonds and tender them for delivery ~thin 60 days from the date herein fixed for the receipt of bids, and in such event the successful bi4ier shall be entitled to the return of the check accompanying his bid. The City expects to make sucJt. delivery in the form of definitive bonds, but reserves the right to make such delivery in the form of; temporary bonds, exchangeable for definitive bonds, at no cost to the purchaser. FOI'ID of Bid: Each bid, together with the bid check, must be in a sealed envelope, addressed to the City Council with the ~nvelope and bid clearly marked "Proposal for the Purchase of Electric Revenue Bonds, Issue of 19~." Each bid must be in accordance with the terms and conditions set forth in this notice and must &e submitted on, or in substantial accordance with, the bid form provided by the City. Bid Cheek: A certified qr cashier's check on a responsible bank: or trust company in the amount of $840,000 payable to the drder of the City must accompany each proposal as a guaranty that the bidder, if successful, will acce~t and pay for said bonds in accordance with the terms of his bid. The check accompanying any accePtc.. too proposal shall be applied on the purchase price or, if such proposal is accepted but not perform~ unless such failure of performance shall be caused by any act or omission of the City, shall thenlbe cashed and the proceeds retained by the City. The check accompanying each unaccepted proposal will; be returned promptly. ~; c..... in Tax Exempt i Status: At any time before the bonds are tendered for delivery, the successful bidder may disaffir$t and withdraw the proposal if the interest received by private holders from bonds of the same typ4 and charactcc shall be declared to be taxable income under present federal income tax laws, eithdr by a ruling of the Internal Revenue Service or by a decision of any 3 t i 8/1178 I"'"'" .~ federal court, or shall be de,lared taxable, or be required to be taken into account in computing any federal income taxes, by the terms of any federal income tax law enacted subsequent to the date of this notice. ./~, Legal OpiDion: The o~inion of O'Melveny & Myers, attorneys, approving the validity of said bonds and opining that interest on the bonds is exempt from income taxes of the United States of America under present fedeJjaI income tax laws, and that such interest is also exempt from personal income taxes of the State of ~alifornia undtr present state income tax laws, will be made available to the successful bidder at the tPe of delivery of the bonds, at the expense of the City. A copy of such opinion, certified by an office* of the City by his facsimile signature, will be printed on the back of each bond. No charge will be made to the purchllser for such printing or certification. CUSIP Numbers: It is ~ticipated that CUSIP numbers will be printed on the bonds, but neither the failure to print such num~s on any bond nor error with respect thereto shall constitute cause for a failure or refusal by the purcJmser thereof to accept delivery of and pay for the bonds. All expenses of printing CUSIP numbers bn the bonds shall be paid by the City, but the CUSIP Service Bureau charge for the assignment of] said numbers shall be paid by the successful bidder. Non-Arbitrage Certifieat~: The City will furnish to the successful bidder at the time of delivery of the bonds a certificate, ac40mpanied by an opinion of counsel, that on the basis of the facts, esti- mates and circumstances in ,xistence on the date of issue of the bonds, it is not expeCted that the proceeds of the bonds will be used in a manner that will cause the bonds to be arbitrage bonds. Non-Litigation Certifieat.: At the time of delivery of the bonds, the City will furnish the successful bidder a certificate that there ~s no litigation pending affecting the validity of the bonds. Official Statement: The !City will furnish to the successful bidder, without charge, 500 copies of the Official Statement appro~d by the City Council for this issue. At the time of delivery of the bonds, the City will furnish td the successful. bidder a certificate to the effect that at the time of sale of the bonds and at all times suJ>sequent thereto up to and including the time of said delivery the Offi- cial Statement did not contaiq any untrue statement of a material fact or omit to state a material fact necessary to make the statem~ts therein, in the light of the circumstances under which they were made, not misleading. INFORMATION A V A1JABLE: Requests for other information concerning the bonds and the City or for copies of the Pre'-ttlinary Official Statement should be addressed to one of the following: Wainwright & Ramsey, Inc. Suite 4110, 70 Pine Street New York, New York 10005 Wainwright & Ranfty, Inc. 7325 Woodrow Wqson Dr. Los Angeles, Califqrnia 90046 Wainwright & RaII$ey, Inc. 58 Sutter Street San Francisco, California 94104 Gordon W. Hoyt Utilities Director P.O. Box 3222 Anaheim, California 92803 Given by order of the citr Council of the City of Anaheim, California, on August 1, 1978. .~ City Clerk of the City of Anaheim 4 I"" ~ 8/1/78 '.. PROPOSAL FOR THE PURCHASE OF EL~C REVENUE BONDS, ISSUE OF 1978 ~~ Honorable City Council of the City of Anaheim August ...., 1978 % Linda D. Roberts, City perk City Hall, 204 East Lincol.. ]Avenue Anaheim, California 92805 i On behalf of a group ~f underwriter, headed by the undersigned and consisting of thc firms listed below or on a separat~ sheet attachecll hereto, and in accordance with the terms and conditions of the Notice Inviting Bids dJtted August 1, 1978, we offer to purchase $42,000,000 Electric Revenue Bonds, Issue of 1978, all or ~one, maturing on August 1 in the years shown below and bearing interest at the rates shown below: Principal ~ Principal Intere8t Principal late.... Year Amount Year Amount Rate Year Amount Rate - 1983...... $ 475,000 ...... % 1993...... $ 925,000 ...... % 2003...... $1,725,000 ...... % 1984...... 525,000 ....c_ % 1994...... 975,000 ......% 2004...... 1,850,000 ......% 1985._.... 550,000 ....._% 1995...... 1,025,000 ...... % 2005....._ 1,950,000 ......% 1986...... 575,000 ...... % 1996...... 1,100,000 ...... % 2006...... 2,075,000 ...... % 1987 ___... 625,000 ...... % 1997...... 1,175,000 ......% 2007...... 2,200,000 ...... % 1988...... 675,000 ...... % 1998...... 1,250,000 ...... % 2008______ 2,350,000 ......% 1989...... 700,000 ......% 1999...... 1,325,000 ...... % 2009... ... 2,500,000 ......% 1990...... 750,000 ......% 2000...... 1,425,000 ......% 2010...... 2,650,000 ------% 1991...... 800,000 ......% 2001...... 1,525,000 ......% 2011...... 2,825,000 ...... % 1992...... 850,000 ...... % 2002...... 1,625,000 ---...% 2012...... 3,000,000 ...... % and we will pay therefor, at. the time of delivery, par plus a premium of $_000"'_________' plus accrued interest to the date of delivery. In accordance with the t+nns of said Notice Inviting Bids, there is enclosed a certified or cashier's check for $840,000 payable tp the order of the City of Anaheim. If this proposal is not accepted, said check is to be returned to us promptly. Respectfully submitted, -- --" -.......... --.... .._.... ""'''-- -..........-....---........-.. -...... ....-....-------....-..............-------... ---..........-.........--.....---------..-............---.............-....-.-....-------..-................-..--........ -- -.... --.." .......... ---.... ---..'O-.. _...._ ........ _..___...._ ...._......oo .._..oo.. _____ __.._............____.... ....... -- -..- -- -- -.....-.. ...."......-......"'.... ..-_.. ..-.. ....- -----.....- ......-- ....-.... ....... -- ...-..............-.....--.. ........ -- -oo--............-.. ___........ __ __......_.. ___.. _____ __ __.._.. _..._.. __.....____.._.._..............._..__ .......-...___....._................_......_.........................._.........................._....................:i......................_ ~I MEM~UM ()F INI'EREST REQUIREMENTS . (For Inf_atIon Purposes Only) $42,OOO,oot .ELECTRIC ..REVENUE BONDS, ISSUE OF 1978 The total amount of int4~st payable on the Bonds during the life of the issue under the above proposals, without deducting .he premium bid, if any, is $...................................., and the net interest rate is 00_.......00%. 5